Kolar Gold Limited BGML Mine Update (0871J)
11 Juli 2013 - 8:01AM
UK Regulatory
TIDMKGLD
RNS Number : 0871J
Kolar Gold Limited
11 July 2013
11 July 2013
Kolar Gold Ltd
('KGL' or the 'Company')
Supreme Court of India approves plans to enable the Indian
Government to proceed with the tender sale of BGML Mine
Kolar Gold Limited (AIM: KGLD) notes yesterday's media reports,
announcing that the Supreme Court of India instructed the
Government of India to proceed with the tender sale and mine
revival of the historic Bharat Gold Mines Limited ('BGML') gold
mines at Kolar Gold Fields. The KGL Directors believe that the
written order from the Court is expected to be published
tomorrow.
Once initiated, the tender process is anticipated to give the
right of first refusal and counter offer rights to the majority
Cooperative Societies of BGML ex-employees and their financial and
technical collaborator, Kolar Gold Limited. KGL has maintained a
long standing relationship with such ex-employee groups.
Tendering for these assets was and has remained a key objective
of the Company since its shares were admitted to AIM in June 2011.
The historic Kolar Gold Fields have produced 25 million ounces of
gold at 15.9 grams per tonne over the 120 years of their operation
until their closure in 2001 and represent significant development
potential.
One of the next steps include the finalisation by the Mines
Ministry of the already drafted tender document and initiate the
approved four month process, which invites tenders from all gold
mining companies with expertise in underground and selective open
pit gold mining, tailings operations and responsible and
sustainable community development to submit appropriate bids in
return for a mining licence over the BGML assets.
The Directors believe that the Company and its local partner,
SUN Mining*, have the relevant expertise and skill set for all
aspects of the tender. In addition, the Company's other activities,
which are the exploration and development of gold projects adjacent
to and surrounding the BGML gold mines in the Kolar Gold Fields,
demonstrate its commitment to gold exploration and mine development
in this region.
The successful acquisition of the BGML assets, as well as being
subject to due diligence, valuation and environmental consideration
would require a separate fundraising which is likely to require
shareholder consent from KGL shareholders.
A further announcement will be made once the Order has been
published and the Board has had opportunity to consider it.
Nick Spencer CEO of KGL commented today:
"This long awaited BGML mine sale tender and revival is an
enormous step and huge opportunity for the Kolar community and, if
successful, Kolar Gold to re-start operations on one of the world's
great gold belts and create significant employment and economic
development in an area of poverty, ill health and unemployment. We
are very close to this community and ex-workforce and have been
working closely with them to bring prosperity to the area."
*SUN Mining's affiliate SUN Gold is an Indian origin gold mining
and exploration company, which is developing two large gold
mines.
Enquires:
Kolar Gold Limited
Nick Spencer +617 3846 0211
N+1 Singer (Nomad and Joint Broker)
James Maxwell / Jenny Wylie +44 20 7496 3000
Ocean Equities Limited (Joint
Broker)
Will Slack +44 20 7786 4370
Tavistock Communications
Ed Portman / Jessica Fontaine +44 20 7920 3150
END
This information is provided by RNS
The company news service from the London Stock Exchange
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